Fintech firm Paytail plans to raise $8 million
Paytail, which is into digital lending, is looking to raise about $8 million in next four to six months to support its growth plans.
“We have already initiated talks. This funding should give us a runway of at least 12-18 months. If we want to grow at 40% a month, we will require a large amount of fund. We are in the lending business, so with more funds one can grow faster,” said Vikas Garg, co-founder & CEO, Paytail.
The firm, which is doing transactions worth ₹40-45 crore a month, is likely to scale it up to ₹150 crore a month in the next six months depending upon the capital it could raise.
“We do not need debt. All money is required in terms of equity. As of now there is no plan to raise any debt but in future if there is any kind of opportunity, we may go for it,” he said.
In terms of product expansion, the firm said it will continue to focus on its field of activity because of the large available opportunity.
“We will continue to focus on tier 2 and tier 3 cities. We are focussing on a lot of brand partners now. We are going after a lot of popular brands, consumer durable and mobiles,” he said.
“In the next 6 months, our target will be on popular segment. That is going to be one of the core strategies for us,” Mr Garg added.
By lending to individuals to purchase products, the firm said it helps small merchants to sell more.
“Our focus is on the small merchants who may be owning single or 2 stores, and are located in a tier 2 or tier 3 city where the big companies in our field do not go because of unviable commercial reasons,” he said.
The firm, he said, works with about 50,000 retailers and adding close to 3,000-4,000 retailers every month. .